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Why is there a security deposit on my Uttar Pradesh electricity bill?

Your discom keeps a security deposit against your future bills. When your use grows, the deposit can fall short. The discom then asks you for an additional security deposit.

  • Reviewed no fixed cycle; based on the previous financial year
  • Top-up: additional security deposit
  • Prepaid meters: no deposit

How UPPCL discoms (DVVNL, MVVNL, PVVNL, PuVVNL, KESCO) reviews the deposit

  • The 2005 Supply Code bases the review on your average consumption in the preceding financial year.
  • For a new connection, the discom asks for more only after one full financial year.
  • The discom asks for more only if the shortfall is more than 10% of the existing deposit.
  • You get 30 days from the notice to pay.
  • If you do not pay, the discom can stop supply while the failure continues.

If you hold more than needed

  • If the deposit is more than 20% above the required amount, the discom refunds the excess.
  • It adjusts the refund in your bills within three billing cycles.

Deposit for a new connection

  • UPERC's Cost Data Book (31 December 2025) sets a fixed deposit per kW of load for a new connection.
  • You pay per kW or part of a kW.
  • Some households have a different rule.

Interest and prepaid meters

  • The 2005 Supply Code pays no interest on a deposit that you did not pay in cash.
  • The 2005 Supply Code credits interest in the bills of April, May and June.
  • UPERC tells discoms to certify each quarter that they collect no security deposit from prepaid consumers.

What we could not confirm

  • We quote the 2005 Supply Code. We could not read some later amendments, so the current wording may differ.
  • We read the Cost Data Book from a scanned copy. Check these figures with your discom.
  • The Cost Data Book shows Rs 100 per kW for a rural home up to 2 kW.
  • It shows Rs 300 per kW for an urban home up to 2 kW.
  • It shows Rs 400 per kW for homes above 2 kW.
  • The Cost Data Book says the deposit should cover 45 days of use. The 2005 Supply Code said 2 months. We do not show a calculator for this reason.
  • The Cost Data Book says the discom adds the demand to your next bill with no late payment surcharge on it.
  • The Cost Data Book says interest follows the RBI bank rate.
  • UPERC used 5.50% to compute deposit interest in the 2026-27 tariff order. This is not a notified consumer rate.
  • The Cost Data Book says you pay no deposit with a prepaid meter. It also says the discom adjusts your old deposit when you change to prepaid.
  • The rules do not say if you can pay the additional security deposit in instalments.
  • We found no official UPPCL sample bill that shows the deposit labels.

Questions

When can my UP discom ask for more deposit?

After your connection completes one full financial year. The discom compares the deposit with your use in the previous financial year.

Will they ask for a small shortfall?

Under the 2005 Supply Code, no. The shortfall must be more than 10% of your existing deposit.

What if I hold too much deposit?

If you hold more than 20% above the required amount, the discom adjusts the excess in your bills within three billing cycles.

More tools

Uttar Pradesh bill calculatorWhere to complain in Uttar PradeshOther states

Sources

Read on 16 October 2026.

ebbillcalc is not part of any discom or regulator. The regulations and your discom have the final word.